1031 Exchange from MD Property to Another Market

Member since 2025 · 5 posts · 3 votes

Hi there,

I am new to BP and want to do my first 1031 exchange that I have owned since 2011 in my hometown. I have not been paying that much attention to RE investing since. Looking to sell it for $350k in suburb of Baltimore area, but still trying to do some research on 1) which market to invest and 2) type of property, either STR or Multi-family unit from out-of-town. I have also been living and working in Manhattan ever since so trying to take into consideration the commute. Any advice on interesting markets and product type I should consider? I have been listening to many podcasts but want to meet and have live discussion as well! Thank you.

0 Reply

111 views

3 Replies

Jump to latestLatest

Sort by

Pierre Guirguis
Lender · Marlboro, NJ · Member since 2025 · 243 posts · 150 votes
7mo
If you’re based in Manhattan and still want something within a reasonable distance, you might want to take a look at the Lehigh Valley area in Pennsylvania (Allentown / Bethlehem / Easton). I’ve seen a lot of NYC and NJ investors move capital there over the past few years because prices are still more reasonable than most Northeast markets and the rental demand has been pretty consistent.

Another advantage is the location. It’s roughly 1.5–2 hours from NYC, so it’s still manageable to get there if you want to check on the property occasionally.

In terms of asset type, a lot of investors there focus on small multifamily rather than short-term rentals since the tenant demand is steady and the numbers tend to pencil out better.

For a 1031 specifically, I’d focus less on chasing the “hot” markets you hear about on podcasts and more on finding a property where the cash flow and long-term fundamentals make sense for you.
0 Reply
Alex Olson
Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
7mo
Of course I am partial to KC. Can get a lot for your money.
0 Reply
Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
7mo
@Karen Tai, that's a lot of depreciation to recapture, and I'm assuming some pretty good appreciation as well from the time you bought it. So, a 1031 exchange would be a great strategy to defer all of the tax and depreciation recapture.

You can utilize the 1031 exchange in many ways, like consolidation or diversification, to scale your RE portfolio and access markets with more cash flow and appreciation potential. Maybe closer to home, like you mentioned. This can also be any type of investment real estate that's held for productive use, from single-family to commercial.
The 1031 Investor5140 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.